Revolut gets nod to launch commission-free stock trading in the U.S.

abdelaziz Fathi

Europe’s largest neobank, Revolut is set to officially roll out its commission-free stock trading platform in the United States.

The London-based fintech unicorn has been operational in the US retail market since 2020 and is now approved as a licensed broker-dealer under the brand “Revolut Securities”.

The news comes barely two months after Revolut, which offers banking and trading services through an app, raised $800 million in a funding round that valued the firm at $33 billion. This valuation was a sixfold increase compared to nearly $5.5 billion the UK firm was worth in 2020.

To further sweeten its offering, Revolut Securities plans to introduce a fractional trading feature as a way to lower the bar for young investors to as little as $1. The feature allows small-bucks investors to diversify their portfolios by spreading their relatively small capital over a broader range of stocks.

“We are building a single app where people can manage all aspects of their finances, from banking and foreign exchange to cryptocurrency and stock trading. We’re eager to break down common barriers to entry around stock trading such as account minimums and complex interfaces”, said Nik Storonsky, Founder & CEO of Revolut.

Trading has become a booming business

Revolut’s expansion into the US market comes amid a boom in retail trading. The COVID-19 pandemic and government stimulus checks helped draw in a different cohort of investors, many of them young and new to investing.

The US brokerage industry is estimated to have added more than 20 million new accounts in the last two years, with Robinhood alone likely commanding nearly 50% out of that figure. The listed broker has seen explosive growth with nearly 23 million funded accounts and $102 billion in assets under custody, according to its Q2 results.

Earlier in March, Revolut launched its business accounts in the United States across all 50 states. The move came in tandem with the announcement of filing for a US banking license, barely a week after it pulled operations out of Canada.

Revolut has been among a number of app-only fintech companies that are looking to branch into banking as they diversify their revenue stream and bring new services to their existing customers.

Revolut currently offers financial services in the US through a partnership with Metropolitan Commercial Bank. Before March 2020, Revolut’s services, which attracted over 15 million customers, had been available in the UK and Europe with US applicants previously being held on a waiting list.

The new business roll-out comes as the market for Fintech firms offering alternatives to traditional banks has become fiercely competitive. Revolut is already going up against other established rivals, such as Stripe, which recently expanded its portfolio of partner banks that have signed on to offer co-branded banking services.

Read this next

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

<